Sales Tax Exemptions in Kansas

All construction materials and prescription drugs (including prosthetics and devices used to increase mobility) are considered to be exempt. While groceries are not tax exempt, any food that is used to provide meals for the elderly or homebound is considered to be exempt from taxes. In addition, nonprofit organizations that sell food at a discount in return for community service are also exempt from paying a tax on groceries in the state of Kansas.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Kansas:

Clothing

6.5%

Groceries

6.5%

Prepared Food

6.5%

Prescription Drugs

6.5%

OTC Drugs

6.5%

These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":

Candy IS considered a grocery in Kansas

Soda IS considered a grocery in Kansas

Are services, shipping, installation, etc taxable in Kansas?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Kansas sales tax see the Kansas sales taxability FAQ page.

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